Jana DCS Sdn Bhd has petitioned to wind up TAR PH Sdn Bhd after the sovereign wealth fund’s subsidiary failed to honour a statutory demand for payment issued on March 10, 2022.
TAR PH is a wholly owned subsidiary of Themed Attractions Resorts & Hotels Sdn Bhd, Khazanah’s hospitality and attraction destinations arm.
The company owns JEN Johor Puteri Harbour Hotel, a four-star hotel in Iskandar Puteri, which had been run by the Shangri-La group hotel chain until it ceased operations on May 9 this year, reportedly “due to legal proceedings beyond its control”.
“With the closure of the hotel, the respondent company has no income stream at all,” the petition, sighted by FMT, said.
It said the financial statements of the company reveal assets worth RM66.48 million against liabilities of RM183.76 million, after taking into account the debt owed to Jana DCS.
According to the petition, that debt stands at RM94,746,708.01 as of Aug 10, the date it was filed in the Shah Alam High Court by solicitors Zaid Ibrahim Suflan TH Liew & Partners.
“The respondent company (TAR PH) failed or neglected to comply with the notice by making payment in satisfaction of the arbitral award within the (21-day) period of the notice.
“In the circumstances, and as the respondent company is deemed to be unable to pay its debts under Section 465(1)(e) of the Companies Act 2016, the respondent company should be wound up.
“Additionally, it is also just and equitable for the respondent company to be wound up,” the petition said.
TAR-PH’s debt to Jana DCS is premised on an arbitral award of RM89,262,672.91 handed down last year.
Former Court of Appeal judge Ananthan Kasinather, sitting as arbitrator, ruled that the Khazanah subsidiary had wrongfully terminated a 2012 agreement with Jana DCS for the supply of cooling loads to serve the air-cooling systems to the hotel.
On Jan 11, 2023, judicial commissioner Adlin Abdul Majid (now a High Court judge) dismissed TAR PH’s attempt to set aside the arbitral award. Adlin went on to record the terms of the award as a judgment of the court in favour of Jana DCS.
“(On Jan 31) the petitioner’s solicitors wrote again to the respondent company demanding payment be made to satisfy the final arbitral award.
“The respondent company still did not comply but instead, on April 6, filed an application to the High Court seeking an order to stay the execution of the order dated Jan 11 pending its appeal to the Court of Appeal,” the petition said.
However, on June 12, TAR PH’s applications for to stay and injunct the enforcement of the award were dismissed with costs, it added.
Jana DCS is seeking the appointment of Mok Chew Yin and Bernard Check of BDO Consulting Sdn Bhd as the company’s liquidators.
The petition is fixed for case management on Sept 18, and for hearing on Nov 7.